The Study Of The Commercial Bank Performance Evaluation System Based On Balanced Score Card

As the financial reformation keeps deepening, research in the performace evaluation of China's commercial banks is getting more attention from Chinese academy community. However, general quantitative financial indicators are more commonly used than qualitative non-financial indicators in the previous studies. This thesis will establish a scientific and reasonable performance evaluation system based on the existing research, which is designed to be more operational and more closely connected to commercial banks, and also to make more practical assessments. Then based on the analysis, appropriate constraint and relative policy guidance will be made to improve the overall performance management level of China's commercial banks.By analyzing the construction of performance evaluation index system and introducing the Balanced Scorecard theory, this thesis aims to design the index system associated with the banks' own characters, which is according to the principles of strategic consistency, scientific rationality, comprehensiveness, representation and availability and with four dimensions-finance, customers, internal business, learning and growth. And then, by utilizing the index weight resulted from AHP with fuzzy comprehensive evaluation method, comprehensive evaluation to the performance of commercial banks is conducted; performance evaluation system fitting the commercial banks' own characteristics is explored and established;therefore the performance evaluation is made both scientific and practical by means of the feasible quantitative criteria and the distribution of indicator weight. In addition, by case study, this research illustrates the application of theory of Balanced Scorecard via applying performance evaluation system to the China Construction Bank of Shandong Province. Based on the formation of index system of performance evaluation, this thesis uses AHP to detennine the weight of each indicator, and then makes fuzzy comprehensive evaluation to China Construction Bank of Shandong Province.The results show that performance evaluation system based on the Balanced Scorecard theory is able to provide comprehensive, systematical and scientifical evaluation; by using AHP, the weight of indicators can be accurately determined; and by using the fuzzy comprehensive evaluation method, the result could be made more reasonable. Besides, case studies showed that the level of overall performance management could be revealed much more explicitly by using this system, and the score between various indicators in the same level can also be compared, making it more convenient to identify the weaknesses in performance management and then strengthen it. So, the management level could be promoted especially in the lower scored commercial banks, eventually leading to a new round of improvements of performance management level in the whole industry.